Oil & Gas (Energy) are the top commodities that have been in question for many years. How long will these resources last? What will do in the long run when resources start to twiddle down? It is the age old question of supply and demand from a procurement perspective. This is a matter of understanding from inside an organization what it takes to fulfill the supply and demand of the industry. Having the right resources to find and implement a plan is necessary when trying to achieve a plan of sourcing the supply, understanding the market place, finding the competition and analyzing the supplier.
All business are in need of supply and understanding the function that is necessary when developing a business can help gage the physical input of the quality and the overall functionality of the supply role. Having the right factors in supply can give us a better understand of the timing and quality. For example, to help stream line the quality of supply companies must set guidelines and performance meters to ensure the productivity and investments. This allows for less risk in knowing the av...
The purpose of supply chain is to improve overall performance of a business. Whether organisation is functioning national or worldwide the competition is always increasing and offering products at the lowest possible cost with the best possible customer service is a way to ensure market share.
WISNER, J.D., TAN, K. and LEONG, G.K., 2009. Principles of supply chain management : a balanced approach / Joel D. Wisner, Keah-Choon Tan, G. Keong Leong. Mason, OH : South-Western Cengage Learning, 2009; 2nd ed. pp 111-113,262
A crucial objective for the company is to get the best available resources and make sure that the product is of standard quality (quality assurance & control). Extra care is required in maintaining the supply chain for businesses that
This research will focus its philosophy on interpretivism, which is “the study of social phenomena in their natural environment”. Interpretivism is simply trying to under stand what goes on in a company or an organization or in a business sector, in the case the oil and gas sector (Saunders and Lewis, 2012:106). In order ways, can be used to understand the role of project management best practices been applied by oil companies and how it affects their, outcome, performance and the industry in general. It helps to “understand and study the social phenomenon in the environment” (Saunders and Lewis, 2012:106) taking on the viewpoints, perceptions and assessment of the oil and gas
The purpose of this research is to evaluate potential of TQM for improving the effectiveness and efficiency of supply inspections.
The Oil & Gas Industry within the Energy Sector includes Oil and Gas exploration and Production, Oil and Gas Refining, Storage and Transportation. The three major focus areas of the oil and gas industry is firstly; exploration and production of oil and natural gas known as the “upstream”, secondly; transportation, storage, and selling refined oil and gas products called the “midstream’, and thirdly; refining and promoting of crude oil or “downstream”. The major international oil and gas companies (Exxon Mobil, Conoco Phillips, Chevron, Royal Dutch Shell, British Petroleum and Total S.A.) also known as “supermajors” are vertically integrated which means they are involved in all aspects of the upstream, midstream, and downstream activities. All the “supermajors” have around a 6% of global oil and gas reserves and market capitalization of approximately $100 billion or greater (Supermajor Companies). Saudi Aramco is the largest Oil and Gas Company in the entire industry. As Oil and Gas being scarce non-renewable natural resources and massive demand on the planet, yielding profits for oil and gas companies.
The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004).
The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).
The operational difficulties are costs considered during the supplier selection. These costs include transaction processing and the cost of rejects, but the main issue is the effort to estimate these costs (Mwikali & Kavale, 2012:192). The purchasing company would need to consider both the demand and the recall risk (Wang, 2014:35). Precise operational decisions need to be made to alleviate these risks in every firm. The operational difficulties focus on capacity and quality related issues (Wang, 2014:35). It is important to optimize quality and capacity. The purchasing company will have to consider analysing the annual turnover of the suppliers current and past financial structure (Mwikali & Kavale, 2012:192). The economic status will affect the supply of goods, if there a financial issues supply may be hindered. The purchasing company needs to also consider, can there company overcome the risk of selecting the wrong
The oil & gas industry is among the largest industries in the world. The sector generates large revenues and employs a large number of people in order to meet the worldwide demand for energy.
...ns and material necessary that need to be consumed during the business processes. The biggest part of this activity is contract and orders related to natural gas supply, purchase and modernization of pipelines, and machinery required for maintain good condition of pipelines. Company needs to predict when and what amount of natural gas needs to be transferred to meet consumer demand. Another important task of procurement is purchase of compressors required for steady flow of natural gas to end customers and the maintenance equipment required to ensure high efficiency and dependable. It is required for the company to properly plan all supply orders to lower variable costs and increase profits. Each activity level requires supply of specific materials unique for the processes and operations, which shows that procurement is present in every single stage of value chain.
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
A customer should research about the suppliers whether they satisfy the customers’ requirements. Such as if a customer does not have a budding relationship with sales and marketing functions of needed services and products then they are required to find a supplier who can satisfy their requirements. If the customer did not gather information about the suppliers they might be in trouble...
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
This is the activity carried out by organizations that own production sites, and their performance has a major impact on product cost, quality, speed of delivery and delivery reliability, and flexibility [8]. As it is quite an important part of the supply chain, production needs to be measured and continuously improved. Suitable metrics for the production level are as follows. Order lead-time, the total order cycle time, called order to delivery cycle time, refers to the time elapsed in between the receipt of customer order until the delivery of finished goods to the customer. The reduction in order cycle time leads to reduction in supply chain response time, and as such is an important performance measure and source of competitive advantage [9]. It directly interacts with customer service in determining competitiveness. Range of product and services: According to [8] a plant that manufactures a broad product range is likely to introduce new products more slowly than plants with a narrow product range. Plants that can manufacture a wide range of products are likely to perform less well in the areas of value added per employee, speed and delivery reliability. This clearly suggests that product range affects supply chain performance. Effectiveness of scheduling techniques is another important measure of supply chain effectiveness. Scheduling refers to the time or date on or by which